Abstract : Technology and innovation remain key features of defence systems in major arms-producing countries even though technological superiority appears less imperative since the fall of the Soviet Union. Moreover decreasing defence budgets cannot support the same level of resources dedicated to R&D, particularly in Europe. Nevertheless armed forces still need to adapt to an instable operational environment characterised by uncertain, unknown and unpredictable threats. Therefore European armed forces face a dilemma: how to keep the adequate effort of innovation while minimizing related spending. Such challenges seem to jeopardize the model of technology-based arms race that somehow characterised the Cold War. One may wonder if the current situation marks a temporary change or, on the contrary, if the defence stakeholders face a transition towards a new innovation model.